Cash Flow Analysis Gas’n’Goodies Corporation, an operator of several convenience stores, received cash of

$103,200 from sales to customers during the period. In addition, an employee paid back a $500 loan from the company.

Near the end of the period, the company sold an old display rack it no longer used for $100. Because of expansion plans, the company borrowed $50,000 from the bank. The company made payments of $42,000 for gas and $34,000 for merchandise during the period. In addition, $6,800 was paid for wages,

$1,100 for utilities, and $2,000 for rent. The company paid

$400 cash for a new sign and entered into a lease for a new location at a rent of $1,000 per month, starting next period.

a. Prepare a listing of the company’s cash inflows and outflows. Present the cash flows in a way you feel would be useful. Justify your presentation.

b. As a decision maker, do you think the cash flow for Gas’n’Goodies this period is a good predictor of cash flows in future periods? Explain your answer.